Which of the Following Is a Negative Sign That a Company

question 3

Multiple Choice

Which of the following is a negative sign that a company is not selling its inventory quickly?

• A)A low inventory turnover ratio.
• B)A high inventory turnover ratio.
• C)A low average days in inventory.
• D)Both a high inventory turnover ratio and a low average days in inventory.

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Definitions:

Monthly Grants

Financial assistance or funds distributed on a monthly basis to individuals, organizations, or projects.

Compounded Semi-Annually

A frequency of interest calculation where the interest is added to the principal every six months, resulting in earning interest on interest in the second half of the year.

Present Value

The current value of a future sum of money or stream of cash flows, given a specified rate of return.

Perpetuity

A type of financial instrument that pays a fixed amount of cash flows indefinitely, without a maturity date.